The Bahamas in 2004

The Bahamas government announced in March 2004 that it had made “significant progress” on a key aspect of the fight against money laundering—mutual legal assistance treaties with other countries. “Positive responses” relating to legal assistance matters had been forthcoming following requests made by treaty partners.

The Inter-American Development Bank (IDB) said in May that the tourism industry, financial services, and transshipment activity would remain The Bahamas’ key sources of economic growth up to 2007. It cautioned, however, that the country was vulnerable to “external shocks” of both a natural and an economic nature. True to the IDB’s prediction, The Bahamas did not escape the widespread destruction wrought by hurricanes in 2004, one of the worst such seasons on record. Hurricane Frances in early September caused at least $25 million in damage to the Family Islands, and later that month Hurricane Jeanne generated additional damages, this time mostly in Freeport, Grand Bahama. Prime Minister Perry Christie looked to the European Union to provide most of the money for reconstruction.

In June the government signaled that the setting up of a national lottery was “under review.” It was estimated that about $100 million was being spent annually by Bahamians on the Florida Lottery.